fast food fables case study

8/8/2019 Fast Food Fables Case Study

1/63

FAST FOOD FABLES

Presented By:-

Subhash Singh Tomar (19)Abhishek Bajpai (27)

Reeshabh Kumar (37)


2/63

Abstract

The case discusses the localization strategies adopted by

the multinational fast food chains - McDonald's,

Domino's and KFC in India. Initially, these fast foodchains found it tough to cater to Indian tastes. Soon, they

customized their menu, positioned their products and

advertised to appeal to Indian customers. McDonald's and

Domino's succeeded to a certain extent, while KFC stillhad a long way to go. And the factors that forced the fast

food chains to understand the local market and modify

their strategies to suit local requirements.


3/63

Mc DONALDs


4/63

CUSTOMER DERIVED VALUE

LOW-MED MED MED

HIGH HIGH

LOW

LOW LOW


5/63

Geographic region:-

Region- Urban India

City- metro cities.

SEGMENTATION OF

Mc DONALD


6/63

Demographic Segmentation

Targeted on:

Middle and Upper income group families,

Family stage:

Full nest

Potential target:

Office goers, Special Dial M facility


7/63

Psychological Segmentation

Motivations Personality

Perceptions

Learning


8/63

Motivation

Need- Innate need.

Goal- product specific need

Motivation- Positive motivation

Motives- Emotional as well as Rationalmotives

Arousal of motives- Physiological arousalas well as environmental arousal


9/63

MASLOWS HIERARCHY

Physiological Needs

(Food, water, air, shelter, sex)

Safety and Security Needs

(Protection, order, stability)

Social Needs

(affection, friendship, belonging)

Ego Needs

(Prestige, status, self esteem)

Self-Actualization(Self-fulfillment)


10/63

AS PER TRIO OF NEEDS

As per Freudian Theory of Personality

NEED FOR

AFFILIATION(People who

often select goods ,They feelwill meet with the approval of

friends)

Id & Ego

Personality


11/63

Acc. To Horney- Compliant (family)

VARIOUS TRAITS(as per trait theory)

Consumer Innovativeness: - Innovativeness- Low-medium

Dogmatism- Medium

Social character- Other directed

Need for Uniqueness- Low-medium

Optimal stimulation level- Medium

Sensation seeking- Medium

Variety-novelty seeking- Medium-high

Personality (cont)


12/63

Cognitive personality factors: -

Need for Cognition- low (Visualizer)

Brand personality- Competent

Personality (cont)


13/63

Different Self-Images

Actual Self-

ImageIdeal Self-Image

Ideal Social

Self-

Image(MacD

customer)

Social Self-Image

Expected

Self-Image


14/63

Perception

Webers law- S1 < S2

i.e. Noticed

Above JND (Just noticeabledifference)

Pricing Strategies focused on perceivedvalue-

Relationship Pricing


15/63

Behavioral Segmentation

Attitude

Tri component model-

Conation (Do)

Affect (Feel)

Cognition (Learn)


16/63

Product Level

Core benefit - Fast Food

Basic product - Berger

Expected product - EasyAvailability

Augmented product -Socialization

Potential product -Available at lowest pricethen others.


17/63

Product Hierarchy

Need Family : Hunger

Product Family : Snacks

Product Class :All Kinds of Snacks

Product Line :Road Side or Restaurant

Product Type : Veg-Berger or Non-veg

Berger

Item : Mc Donalds Veg-Berger


18/63

Classical Conditioning

Unconditioned Stimulus

20/-

Conditioned Stimulus

Mac Donald's

Unconditioned ResponseVeg.


Mac Donalds

Conditioned Response

Aloo tikki burger

AFTER REPEATED PAIRINGS


19/63

Reinforcement:-

Positive Reinforcement

Observational learning


20/63

The Elaboration Likelihood

Model

Involvement

Central

Route

Peripheral

Route

Peripheral

Cues

Influence

Attitudes

Message

Arguments

Influence

Attitudes

HIGH LOW


21/63

Latent

LoyaltyNo

Loyalty

Spurious

Loyalty

Loyalty

LowLow

HighHigh

HighHigh LowLow

Repeat PatronageRepeat Patronage

RelativeRelativeAttitudeAttitude

Brand Loyalty


22/63

Positioning

Image positioning-

The brand name Mc Donald's carries

many associations burger, fun, children,

fast food, ambience, all of these makes

up the brand image.

Competitor positioning-

Mc Donalds mein hai kuch baat


23/63

DOM

INOs


24/63


HIGH MED LOW

HIGH HIGH

LOW

HIGH LOW


25/63

Segmenting DOMINOS

Geographic

Region- Northern India

City size- Urban, Delhi.

DemographicTargeted on: upper- middle, middle

Family- full nest,

people seeking convenience

Psychographic

Motivations

Personality

Perceptions

Learning


26/63

Motivation

Need- Innate need.

Goal- Product specific need


Motives- Emotional as well as rational motives

Arousal of motives- Physiological andenvironmental arousal


27/63

MASLOWS HIERARCHY

Physiological Needs

(Food, water, air, shelter, sex)



Social Needs


Ego Needs


Self-Actualization(Self-fulfillment)


28/63

AS PER TRIO OF NEEDS

As per Freudian Theory of Personality

NEED FOR

AFFILIATION(People who

often select goods ,They feelwill meet with the approval of

friends)

Id & Ego

Personality


29/63

Personality

Acc. To Horney- Aggressive

VARIOUS TRAITS

Consumer Innovativeness: -

Innovativeness-high

Dogmatism- medium

Social character- other directed

Need for uniqueness- medium Optimal stimulation level- medium

Sensation seeking- medium

Variety-novelty seeking- medium


30/63

Cognitive personality factors: - Need for Cognition- low (Visualizer)

Brand personality- excitement


31/63


Actual Self-

Image

Ideal Self-Image

(Dominos

Customer)

Ideal Social

Self-Image Social Self-Image

Expected

Self-Image


32/63

Perception

Webers law- S1 < S2

i.e. Noticed



Satisfaction based Pricing


33/63

Behavioral

Benefits : Delivery in 30 mins or free

Attitude:

Tri component model-Conation (Do)

Affect (Feel)

Cognition (Learn)


34/63

Product Level


Basic product - Pizza


Augmented product -Available in many sizes

and flavor. Potential product -

Available at lowest price

than others.


35/63

Product Hierarchy





Product Type : Dominos, Wimpy, Pizza

hut, Pizza corner, or Nirulas

Item : Dominos Pizza


36/63



Free home delivery

within30 min


Dominos

Unconditioned ResponsePizza


Dominos


Pizza



37/63

Reinforcement:-




38/63


Model

Involvement

Central

Route

Peripheral

Route

Peripheral

Cues

Influence

Attitudes

Message

Arguments

Influence

Attitudes

HIGH LOW


39/63

Latent

LoyaltyNo

Loyalty

Spurious

Loyalty

Loyalty

LowLow

HighHigh

HighHigh LowLow



Brand Loyalty


40/63

Benefit positioning

Competitor positioning

Positioning


41/63


42/63


HIGH HIGH HIGH

MED-

HIGH

HIGH

MED

MED-

HIGH

MED-

HIGH


43/63

Segmenting KFC

Geographic

Region- Calcutta, Delhi, Bangalore,

Hyderabad, Mumbai

City- Urban Areas, metros

Demographic

Targeted on: upper- middle, middle

Family- full nest

Psychographic

Motivations

Personality

Perceptions

Learning


44/63

Initially KFC targeted detached personality

people, offering only individual meals of

international taste

Later they changed their target to families


45/63

Motivation

Need- Innate need.

Goal- Product specific need


Motives- Emotional motives

Arousal of motives- Physiological and

environmental arousal


46/63

MASLOWS HIERARCHY

Physiological Needs(Food, water, air, shelter, sex)



Social Needs


Ego Needs


Self-Actualization

(Self-fulfillment)


47/63

As per Freudian Theory of Personality Ego

Personality

Acc. To Horney- Detached Compliant


48/63

Personality

VARIOUS TRAITS( as per trait theory)

Consumer Innovativeness: -Innovativeness-high lowDogmatism- low highSocial character- inner other directed

Seek uniqueness a little lessOptimal stimulation level- mediumSensation seeking- high mediumVariety-novelty seeking- medium


49/63

Cognitive personality factors: -

Need for Cognition- low (Visualizer)

Brand personality- excitement


50/63

Attitude-


Conation (Do)

Affect (Feel)

Cognition (Learn)

Behavioural


51/63


Actual Self-

ImageIdeal Self-Image

Ideal Social

Self-Image Social Self-Image

Expected

Self-Image


52/63

Perception

Webers law- S1 < S2

i.e. Noticed



Relationship Pricing


53/63

Behavioral Segmentation

Attitude


Conation (Do)

Affect (Feel)

Cognition (Learn)


54/63

Product Level


Basic product - Berger


Augmented product -Socialization

Potential product -Available at lowest pricethen others.


55/63

Product Hierarchy





Product Type : Veg-Berger or Non-veg

Berger

Item : Mc Donalds Veg-Berger


56/63



20/-


Mac Donald's

Unconditioned Response

Aloo tikki burger


Mac Donalds


Aloo tikki burger



57/63

Reinforcement:-




58/63


Model

Involvement

Central

Route

Peripheral

Route

Peripheral

Cues

Influence

Attitudes

Message

Arguments

Influence

Attitudes

HIGH LOW


59/63

Latent

LoyaltyNo

Loyalty

Spurious

Loyalty

Loyalty

LowLow

HighHigh

HighHigh LowLow



Brand Loyalty


60/63

Positioning

Image positioning-

The brand name Mc Donald's carries

many associations burger, fun, children,fast food, ambience, all of these makes

up the brand image.

Competitor positioning-Mc Donalds mein hai kuch baat


61/63

Positioning

User positioning


62/63

Mc Donalds

Differenciate on-

Q: quality

S: service

C: cleanliness

V: value

Advertise as a

family restaurant.

Differenciate on-

Channel: delivery in

30 min.

Advertisements

shows aggressive

personality type

Dominos


63/63

THANK YOU

Dr. Nitya Jaiswal

Dean In BIMHRD (Pune)

fast food fables case study

Documents